Crypto Markets Steady as Traders Await Fed Decision and U.S.–China Trade Progress

Cryptocurrency markets were largely stable midweek as traders turned cautious ahead of the U.S. Federal Reserve’s policy announcement and ongoing developments toward a potential trade agreement between the U.S. and China.

Bitcoin (BTC) slipped slightly to around $113,100, while ether (ETH) hovered just above the key $4,000 support level, both extending their recent consolidation patterns.

Market participants are closely watching two major macro catalysts this week — the Federal Reserve’s interest rate decision, expected later Wednesday, and high-level trade talks between Washington and Beijing.

Analysts broadly anticipate a 25-basis-point rate cut, which would bring the federal funds rate to a range of 3.75%–4.00%. However, a decision to hold rates steady at 4.00%–4.25% could trigger a risk-off reaction across markets as a stronger dollar pressures crypto and equities alike.

In Asia, attention has turned to an expected meeting between Chinese President Xi Jinping and U.S. President Donald Trump, which could finalize a long-discussed trade accord. A breakthrough deal is likely to lift U.S. equities and, by extension, bitcoin — which has maintained a positive correlation with stock indices in recent months.